The Income Support (General) Regulations 1987

Regulation 8

SCHEDULE 1PERSONS NOT REQUIRED TO BE AVAILABLE FOR EMPLOYMENT

Lone parents

1.  A person who is a lone parent and responsible for a child who is a member of his household.

Single persons looking after foster children

2.  A single claimant or a lone parent with whom a child is boarded out by a local authority or voluntary organisation within the meaning of the Child Care Act 1980(1) or, in Scotland, the Social Work (Scotland) Act 1968(2).

Persons temporarily looking after another person

3.  A person who is—

(a)looking after a child because the parent of that child or the person who usually looks after him is ill or is temporarily absent from his home; or

(b)looking after a member of the family who is temporarily ill.

Persons caring for another person

4.  A person who is regularly and substantially engaged in caring for another person if—

(a)the person doing the caring is in receipt of an invalid care allowance under section 37 of the Social Security Act(3); or

(b)the person being cared for is in receipt of attendance allowance under section 35 of that Act; or

(c)the person being cared for has claimed attendance allowance under that section but only for the period up to the date of determination of that claim, or the period of 26 weeks from the date of that claim, whichever date is the earlier.

Persons incapable of work

5.  A person who, by reason of some disease or bodily or mental disablement, is incapable of work.

Disabled workers

6.  A person who is mentally or physically disabled and whose earning capacity is, by reason of that disability, reduced to 75 per cent or less of what he would, but for that disability, be reasonably expected to earn.

Disabled students

7.  A person who is a student and who, by reason of any mental or physical disability, would, in comparison with other students, be unlikely to obtain employment within a reasonable period of time.

Blind persons

8.  A person who is a blind person registered in a register compiled by a local authority under section 29 of the National Assistance Act 1948(4) (welfare services) or, in Scotland, who has been certified as blind in a register maintained by or on behalf of a regional or islands council, but a person who has ceased to be so registered on regaining his eyesight shall nevertheless be treated as so registered for a period of 28 weeks following the date on which he ceased to be so registered.

Pregnancy

9.  A woman who—

(a)is incapable of work by reason of pregnancy; or

(b)is or has been pregnant but only for the period commencing 11 weeks before her expected week of confinement and ending seven weeks after the date on which her pregnancy ends.

Persons in education

10.  A person to whom any provision of regulation 13(2)(a) to (e) (persons receiving relevant education who are parents, persons severely handicapped, orphans and persons estranged from their parents or guardian) applies.

Training allowances

11.  A person who is in receipt of a training allowance.

Open University students

12.  A person who is following an Open University course and is attending, as a requirement of that course, a residential course.

Persons within 10 years of pensionable age

13.  A person who is within 10 years of attaining pensionable age and—

(a)has not been in remunerative work during the previous 10 years; and

(b)has no prospect of future employment in remunerative work; and

(c)during that period has not been required to be available for employment in accordance with section 20(3)(d)(i) of the Act (conditions of entitlement to income support), or would not have been so required had a claim to income support been made by or in respect of him.

Persons aged 60

14.  A person aged not less than 60.

Allowances under the Job Release Act 1977

15.  A person who is in receipt of an allowance under the Job Release Act 1977(5).

Refugees

16.  Notwithstanding that he would otherwise be a student, a person who is a refugee within the definition in Article 1 of the Convention relating to the Status of Refugees done at Geneva on 28th July 1951(6) as extended by Article 1(2) of the Protocol relating to the Status of Refugees done at New York on 31st January 1967(7) and who—

(a)is attending for more than 15 hours a week a course for the purpose of learning English so that he may obtain employment; and

(b)on the date on which that course commenced, had been in Great Britain for not more than 12 months,

but only for a period not exceeding nine months.

Persons required to attend court

17.  A person who is required to attend court for any period exceeding two days as a justice of the peace, a party to any proceedings, a witness or a juror.

Discharged prisoners

18.  A person who has been discharged from detention in a prison, remand centre or youth custody institution but only for the period of seven days commencing with the date of his discharge.

Persons affected by a trade dispute

19.  A person to whom section 23 of the Act (trade disputes) applies or in respect of whom section 20(3) of the Act (conditions of entitlement to income support) has effect as modified by section 23(8) of the Act (persons affected by a trade dispute and such persons returning to work for the first 15 days).

Persons from abroad

20.  A person to whom regulation 70(3) (applicable amount of certain persons from abroad) applies.

Persons in custody

21.  A person remanded in, or committed in, custody for trial or for sentencing.

Regulations 17 and 18

SCHEDULE 2APPLICABLE AMOUNTS

Regulations 17(a) and (b) and 18(a) (b) and (c)

PART Ipersonal allowances

1.  The weekly amounts specified in column (2) below in respect of each person or couple specified in column (1) shall be the weekly amounts specified for the purposes of regulations 17(a) and 18(a) and (b) (applicable amounts and polygamous marriages).

2.  The weekly amounts specified in column (2) below in respect of each person specified in column (1) shall be the weekly amounts specified for the purposes of regulations 17(b) and 18(c).

Regulations 17(c) and 18(d)

PART IIfamily premium

3.  The weekly amount for the purposes of regulations 17(c) and 18(d) in respect of a family of which at least one member is a child or young person shall be £6·15.

Regulations 17(d) and 18(e)

PART IIIpremiums

4.  Except as provided in paragraph 5, the weekly premiums specified in Part IV of this Schedule shall, for the purposes of regulations 17(d) and 18(e), be applicable to a claimant who satisfies the condition specified in paragraphs 8 to 14 in respect of that premium.

5.  Subject to paragraph 6, where a claimant satisfies the conditions in respect of more than one premium in this Part of this Schedule, only one premium shall be applicable to him and, if they are different amounts, the higher or highest amount shall apply.

6.—(1) The severe disability premium to which paragraph 13 applies may be applicable in addition to either the higher pensioner premium to which paragraph 10 applies or the disability premium to which paragraph 11 applies.

(2) The disabled child premium to which paragraph 14 applies may be applicable in addition to any other premium which may apply under this Schedule.

7.  For the purposes of this Part of this Schedule, once a premium is applicable to claimant under this Part, a person shall be treated as being in receipt of any benefit—

(a)in the case of a benefit to which the Social Security (Overlapping Benefits) Regulations 1979(8) applies, for any period during which, apart from the provisions of those Regulations, he would be in receipt of that benefit; and

(b)for any period spent by a person in undertaking a course of training or instruction provided or approved by the Manpower Services Commission under section 2 of the Employment and Training Act 1973(9).

Lone Parent Premium

8.  The condition is that the claimant is a member of a family but has no partner.

Pensioner Premium

9.  The condition is that the claimant—

(a)is a single claimant or lone parent aged not less than 60 but less than 80; or

(b)has a partner and is, or his partner is, aged not less than 60 but less than 80.

Higher Pensioner Premium

10.—(1) Where the claimant is a single claimant or a lone parent, the condition is that—

(a)he is aged not less than 80; or

(b)he is aged less than 80 but not less than 60, and

(i)the additional condition specified in paragraph 12(1)(a) is satisfied; or

(ii)he was entitled to income support and the disability premium was applicable to him in respect of a benefit week within eight weeks of his 60th birthday and he has, subject to sub-paragraph (3), remained continuously entitled to income support since attaining that age.

(2) Where the claimant has a partner, the condition is that—

(a)he or his partner is aged not less than 80; or

(b)he or his partner is aged less than 80 but not less than 60 and either—

(i)the additional condition specified in paragraph 12(1)(a) is satisfied by whichever of them is aged not less than 60; or

(ii)he was entitled to income support and the disability premium was applicable to him in respect of a benefit week within eight weeks of his 60th birthday and he has, subject to sub-paragraph (3), remained continuously entitled to income support since attaining that age.

(3) For the purposes of this paragraph and paragraph 12—

(a)once the higher pensioner premium is applicable to a claimant, if he then ceases, for a period of eight weeks or less, to be entitled to income support, he shall, on becoming re-entitled to income support, thereafter be treated as having been continuously entitled thereto;

(b)in so far as sub-paragraphs (1)(b)(ii) and (2)(b)(ii) are concerned, if a claimant ceases to be entitled to income support for a period not exceeding eight weeks which includes his 60th birthday, he shall, on becoming re-entitled to income support, thereafter be treated as having been continuously entitled thereto.

Disability Premium

11.  The condition is that—

(a)where the claimant is a single claimant or a lone parent, he is aged less than 60 and the additional condition specified in paragraph 12 is satisfied; or

(b)where the claimant has a partner, either—

(i)the claimant is aged less than 60 and the additional condition specified in paragraph 12(1)(a) or (b) is satisfied by him; or

(ii)his partner is aged less than 60 and the additional condition specified in paragraph 12(1)(a) is satisfied by his partner.Additional condition for the Higher Pensioner and

Disability Premiums

12.—(1) Subject to sub-paragraph (2) and paragraph 7 the additional condition referred to in paragraphs 10 and 11 is that either—

(a)the claimant or, as the case may be, his partner—

(i)is in receipt of one or more of the following benefits: attendance allowance, mobility allowance, mobility supplement, invalidity pension under section 15 of the Social Security Act(10), or severe disablement allowance under section 36 of that Act(11); or

(ii)is provided by the Secretary of State with an invalid carriage or other vehicle under section 5(2) of the National Health Service Act 1977(12) (other services) or, in Scotland, under section 46 of the National Health Service (Scotland) Act 1978(13) (provision of vehicles) or receives payments by way of grant from the Secretary of State under paragraph 2 of Schedule 2 to that 1977 Act (additional provisions as to vehicles) or, in Scotland, under that section 46; or

(iii)is registered as blind in a register compiled by a local authority under section 29 of the National Assistance Act 1948(14) (welfare services) or, in Scotland, has been certified as blind and in consequence he is registered as blind in a register maintained by or on behalf of a regional or islands council; or

(b)the claimant is and has, in respect of a period of not less than 28 weeks, been treated as having been incapable of work for the purposes of one or more of the provisions of the Social Security Act or Part I of the Social Security and Housing Benefits Act 1982(15) or, if he was in Northern Ireland for the whole or part of that period, was treated as having been incapable of work for the purposes of one or more of the comparable Northern Irish provisions; or

(c)the claimant or, as the case may be, his partner was in receipt of either—

(i)mobility allowance or invalidity pension under section 15 of the Social Security Act when entitlement to that benefit ceased solely on account of the maximum age for its payment being reached and the claimant has since remained continuously entitled to income support and, if the mobility allowance or invalidity pension was payable to his partner, the partner is still alive; or

(ii)except where paragraph 1(a), (b), (c)(ii) or (d)(ii) of Schedule 7 (patients) applies, attendance allowance which is no longer in payment solely on account of the claimant or, as the case may be, his partner having undergone or having been treated as undergoing treatment for a period of more than four weeks by virtue of regulation 5 of the Social Security (Attendance Allowance) (No. 2) Regulations 1975(16)

and, in either case, the higher pensioner premium or disability premium has been applicable to the claimant or his partner.

(2) For the purposes of sub-paragraph (1)(a)(iii), a person who has ceased to be registered as blind on regaining his eyesight shall nevertheless be treated as blind and as satisfying the additional condition set out in that sub-paragraph for a period of 28 weeks following the date on which he ceased to be so registered.

(3) For the purposes of sub-paragraph (1)(b), once the disability premium is applicable to a claimant by virtue of his satisfying the condition specified in that provision, if he then ceases, for a period of eight weeks or less, to be treated as incapable of work for the purposes of the provisions specified in that provision he shall, on again becoming so incapable of work, immediately thereafter be treated as satisfying the condition in sub-paragraph (1)(b).

(4) For the purpose of sub-paragraph (1)(c), once the higher pensioner premium is applicable to the claimant by virtue of his satisfying the condition specified in that provision, if he then ceases, for a period of eight weeks or less, to be entitled to income support, he shall on again becoming so entitled to income support, immediately thereafter be treated as satisfying the condition in sub-paragraph (1)(c).Severe Disability Premium

13.—(1) The condition is that the claimant is a severely disabled person.

(2) For the purposes of sub-paragraph (1), a claimant shall be treated as being a severely disabled person if, and only if—

(a)in the case of a single claimant or a lone parent—

(i)he is in receipt of attendance allowance, and

(ii)subject to sub-paragraph (3), he has no non-dependants aged 18 or over residing with him, and

(iii)no-one is in receipt of an invalid care allowance under section 37 of the Social Security Act(17) in respect of caring for him;

(b)if he has a partner—

(i)he is in receipt of attendance allowance; and

(ii)his partner is also in receipt of such an allowance or, if he is a member of a polygamous marriage, all the partners of that marriage are in receipt thereof; and

(iii)subject to sub-paragraph (3), he has no non-dependants aged 18 or over residing with him,

and, either there is someone in receipt of an invalid care allowance in respect of caring for only one of the couple or, in the case of a polygamous marriage, for one or more but not all the partners of the marriage, or, as the case maybe, there is no one in receipt of such an allowance in respect of caring for either member of the couple or any partner of the polygamous marriage.

(3) For the purposes of sub-paragraph (2)(a)(ii) and (2)(b)(iii) no account shall be taken of—

(a)a person receiving attendance allowance; or

(b)a person to whom regulation 3(3) (non-dependants) applies; or

(c)subject to sub-paragraph (4), a person who joins the claimant’s household for the first time in order to care for the claimant or his partner and immediately before so joining the claimant or his partner was treated as a severely disabled person.

(4) Sub-paragraph (3)(c) shall apply only for the first 12 weeks following the date on which the person to whom that provision applies first joins the claimant’s household.

Disabled Child Premium

14.  The condition is that a child or young person for whom the claimant or a partner of his is responsible and who is a member of the claimant’s household—

(a)has no capital or capital which, if calculated in accordance with Part V in like manner as for the claimant, except where otherwise provided, would not exceed £3,000; and

(b)is in receipt of attendance allowance or mobility allowance or both or is no longer in receipt of that allowance because he is a patient provided that the child or young person continues to be a member of the family; or

(c)is blind or treated as blind within the meaning of paragraph 12(1)(a)(iii) and (2).

PART IVweekly amounts of premiums specified in part iii

PART Vrounding of fractions

16.  Where income support is awarded for a period which is not a complete benefit week and the applicable amount in respect of that period results in an amount which includes a fraction of a penny that fraction shall be treated as a penny.

Regulations 17(e) and 18(f)

SCHEDULE 3HOUSING COSTS

Eligible Housing Costs

1.  Subject to the following provisions of this Schedule, the amounts which may be applicable to a person in respect of mortgage interest payments or other prescribed housing costs under regulation 17(e) or 18(f) (applicable amounts) are—

(a)mortgage interest payments;

(b)interest on loans for repairs and improvements to the dwelling occupied as the home;

(c)payments by way of rent, ground rent or, in Scotland, feu duty, relating to a long tenancy;

(d)payments under a co-ownership scheme;

(e)payments under or relating to a tenancy or licence of a Crown tenant;

(f)service charges;

(g)where the dwelling occupied as the home is a tent, payments in respect of the tent and the site on which it stands;

(h)payments analogous to those mentioned in this paragraph.

Basic condition of entitlement to housing costs

2.  Subject to the following provisions of this Schedule, the housing costs referred to in paragraph 1 shall be met where the claimant, or if he is one of a family, he or any member of his family is treated as responsible for the expenditure to which that cost relates in respect of the dwelling occupied as the home which he or any member of his family is treated as occupying.

Circumstances in which a person is treated as responsible for housing costs

3.—(1) A person is to be treated as responsible for the expenditure which relates to housing costs where—

(a)he or his partner is liable to meet those costs other than to a member of the same household;

(b)because the person liable to meet those costs is not doing so, he has to meet those costs in order to continue to live in the dwelling occupied as the home and either he was formerly the partner of the person liable, or he is some other person whom it is reasonable to treat as liable to meet the cost;

(c)he in practice shares those costs with other members of his household, other than close relatives of his or his partner, at least one of whom either is responsible under the preceding provisions of this paragraph or has an equivalent responsibility for housing benefit expenditure and for which it is reasonable in the circumstances to treat him as sharing responsibility.

(2) Where any one or more, but not all, members of the claimant’s family are affected by a trade dispute, the housing costs shall be treated as those of those members of the family not so affected.

Circumstances in which a person is or is not to be treated as occupying a dwelling as his home

4.—(1) Subject to the following provisions of this paragraph, a person shall be treated as occupying as his home the dwelling normally occupied as his home by himself or, if he is a member of a family, by himself and his family and he shall not be treated as occupying any other dwelling as his home.

(2) In determining whether a dwelling is the dwelling normally occupied as the claimant’s home for the purposes of sub-paragraph (1) regard shall be had to any other dwelling occupied by the claimant or by him and his family whether or not that dwelling is in Great Britain.

(3) Subject to sub-paragraph (4) where a single claimant or a lone parent is a student or is on a training course and is liable to make payments (including payments of mortgage interest or, in Scotland, payments under heritable securities or, in either case, analogous payments) in respect of either (but not both) the dwelling which he occupies for the purpose of attending his course of study or his training course or, as the case may be, the dwelling which he occupies when not attending his course, he shall be treated as occupying as his home the dwelling in respect of which he is liable to make payments.

(4) A full-time student shall not be treated as occupying a dwelling as his home for any week of absence from it, other than an absence occasioned by the need to enter hospital for treatment, outside the period of study, if the main purpose of his occupation during the period of study would be to facilitate attendance on his course.

(5) Where a claimant has been required to move into temporary accommodation by reason of essential repairs being carried out to the dwelling normally occupied as his home and he is liable to make payments (including payments of mortgage interest or, in Scotland, payments under heritable securities or, in either case analogous payments) in respect of either (but not both) the dwelling normally occupied or the temporary accommodation, he shall be treated as occupying as his home the dwelling in respect of which he is liable to make payments.

(6) Where a person is liable to make payments in respect of two (but not more than two) dwellings, he shall be treated as occupying both dwellings as his home only—

(a)where he has left and remains absent from the former dwelling occupied as the home through fear of violence in that dwelling or by a former member of his family and it is reasonable that housing costs should be met in respect of both his former dwelling and his present dwelling occupied as the home; or

(b)in the case of a couple or a member of a polygamous marriage where a partner is a student or is on a training course and it is unavoidable that he or they should occupy two separate dwellings and reasonable that housing costs should be met in respect of both dwellings;

(c)in the case where a person has moved into a new dwelling occupied as the home, except where sub-paragraph (5) applies, for a period not exceeding four benefit weeks if his liability to make payments in respect of two dwellings is unavoidable.

(7) Where a person—

(a)has moved into a dwelling and was liable to make payments in respect of that dwelling before moving in; and

(b)had claimed income support before moving in and either that claim has not yet been determined or it has been determined but an amount has not been included under this Schedule and if the claim has been refused a further claim has been made within four weeks of the date on which the claimant moved into the new dwelling occupied as the home; and

(c)the delay in moving into the dwelling in respect of which there was liability to make payments before moving in was reasonable and—

(i)that delay was necessary in order to adapt the dwelling to meet the disablement needs of the claimant or any member of his family; or

(ii)the move was delayed pending the outcome of an application under Part III of the Act for a social fund payment to meet a need arising out of the move or in connection with setting up the home in the dwelling and either a member of the claimant’s family is aged five or under or the claimant’s applicable amount includes a premium under paragraph 9, 10, 11, 13 or 14 of Schedule 2; or

(iii)the person became liable to make payments in respect of the dwelling while he was a patient or in residential accommodation,he shall be treated as occupying the dwelling as his home for any period not exceeding four weeks immediately prior to the date on which he moved into the dwelling and in respect of which he was liable to make payments.

(8) A person shall be treated as occupying a dwelling as his home for a period not exceeding 52 weeks while he is temporarily absent therefrom only if—

(a)he intends to return to occupy the dwelling as his home; and

(b)the part of the dwelling normally occupied by him has not been let or, as the case may be, sub-let; and

(c)the period of absence is unlikely to exceed 52 weeks, or, in exceptional circumstances, (for example where the person is in hospital or otherwise has no control over the length of his absence) is unlikely substantially to exceed that period.

(9) In this paragraph—

(a)“patient” means a person who is undergoing medical or other treatment as an in-patient in any hospital or similar institution;

(b)“residential accommodation” means accommodation—

(i)provided under sections 21 to 24 and 26 of the National Assistance Act 1948(18) (provision of accommodation); or

(ii)section 21(1) of, and paragraph 1 or 2 of Schedule 8 to, the National Health Service Act 1977(19) (prevention, care and after-care); or

(iii)provided under section 59 of the Social Work (Scotland) Act 1968(20) (provision of residential and other establishments) where board is available to the claimant; or

(iv)which is a residential care home within the meaning of that expression in regulation 19(3) (persons in residential care or nursing homes) other than sub-paragraph (b) of that definition; or

(v)which is a nursing home;

(c)“training course” means such a course as is referred to in sub-paragraph (c) of the definition of training allowance in regulation 2(1) (interpretation).

Circumstances in which no amount of housing costs may be met

5.  No amount may be met under the provisions of this Schedule—

(a)in respect of housing benefit expenditure; or

(b)where the claimant is in accommodation to which either regulation 19 (applicable amounts for persons in residential care or nursing homes) or 20 (applicable amounts for persons in board and lodging accommodation or hostels) applies, unless his absence from the dwelling occupied as his home in such accommodation is only temporary within the meaning of paragraph 4(8).

Apportionment of housing costs

6.—(1) Where—

(a)for the purposes of section 48(5) of the General Rate Act 1967(21) (reduction of rates on dwellings), it appears to a rating authority or it is determined in pursuance of sub-section (6) of that section 48 that the hereditament including the dwelling occupied as the home is a mixed hereditament and that only a proportion of the rateable value of the hereditament is attributable to use for the purpose of a private dwelling; or

(b)in Scotland, an assessor acting pursuant to section 45(1) of the Water (Scotland) Act 1980(22) (provision as to valuation roll) has apportioned the net annual value of the premises including the dwelling occupied as the

home between the part occupied as a dwelling and the remainder,the amounts applicable under this Schedule shall be such proportion of the amounts applicable in respect of the hereditament or premises as a whole as is equal to the proportion of the rateable value of the hereditament attributable to the part of the hereditament used for the purposes of a private tenancy or, in Scotland, the proportion of the net annual value of the premises apportioned to the part occupied as a dwelling house.

(2) Where responsibility for expenditure which relates to housing costs met under this Schedule is shared, the amounts applicable shall be calculated by reference to the appropriate proportion of that expenditure for which the claimant is responsible.

Interest on loans to acquire an interest in the dwelling occupied as the home

7.—(1) Subject to sub-paragraphs (2) to (9), the following amounts shall be met under this paragraph—

(a)if the claimant or, if he is a member of a couple, or if a member of a polygamous marriage, he or any partner of his is aged 60 or over, 100 per cent of the eligible interest in his case;

(b)if the claimant or, if he is a member of a couple, or if a member of a polygamous marriage, he and any partner of his are aged under 60—

(i)where the claimant has been in receipt of income support in respect of a continuous period of not less than 16 weeks, 100 per cent of the eligible interest in his case;

(ii)in any other case, 50 per cent of the eligible interest in that case.

(2) Where in a case to which sub-paragraph (1)(b)(ii) applies—

(a)either—

(i)the claim for income support is refused; or

(ii)an award of income support is terminated on appeal or review,solely because the claimant’s income exceeds his applicable amount by virtue of the fact that only 50 per cent of the eligible interest in his case is to be met under sub-paragraph (1)(b)(ii); and

(b)the claimant or any partner of his makes a further claim no later than 20 weeks after—

(i)where the original claim for income support was refused, the date of that claim; or

(ii)where an award of income support was terminated on appeal or review, the date of the claim in respect of which that award was made,

the amount to be met under this paragraph commencing on a date not before the expiry of 16 weeks from the date specified in (i) or (ii) above, as the case may be, shall be 100 per cent of the eligible interest in that case and until that date shall be the amount specified in sub-paragraph (1)(b)(ii).

(3) Subject to sub-paragraphs (4) to (6), in this paragraph “eligible interest” means the amount of interest on a loan, whether or not secured by way of a mortgage or, in Scotland, under a heritable security, taken out to defray money applied for the purpose of—

(a)acquiring an interest in the dwelling occupied as the home; or

(b)paying off another loan but only to the extent that interest on that other loan would have been eligible interest had the loan not been paid off.

(4) Subject to sub-paragraphs (5) and (6) and paragraph 6, the amount of eligible interest in any case shall be the amount, calculated on weekly basis, of—

(a)where, or in so far as, section 26 of the Finance Act 1982(23) (deduction of tax from certain loan interest) applies to the payments of interest on the loan, the interest which is payable after deduction of a sum equal to income tax thereon at the basic rate for the year of assessment in which the payment of interest becomes due;

(b)in any other case the interest which is payable on the loan without deduction of such a sum.

(5) Where a loan is applied only in part for the purpose specified in sub-paragraph (3), only such proportion of the interest thereon as is equal to the proportion of the loan applied for that purpose shall qualify as eligible interest.

(6) Where, under the terms of a loan taken out for a purpose specified in sub-paragraph (3), interest is payable on accumulated arrears of interest (whether or not those arrears have been consolidated with the outstanding capital), the amount of such interest shall be met under this paragraph as if it were eligible interest but only in so far as it represents interest on arrears incurred during any period—

(a)when sub-paragraph (1)(b)(ii) applied in that case; or

(b)when the claimant was not entitled to income support which fell within the period of 20 weeks specified in sub-paragraph (2)(b),

and, in either case, only to the extent that arrears do not exceed 50 per cent of the eligible interest that otherwise would have been payable during the period in question.

(7) Where a person who was formerly one of a couple or a polygamous marriage—

(a)has taken out, either solely or jointly with his former partner, a loan secured on the dwelling occupied as the home for a purpose other than one specified in sub-paragraph (3); and

(b)has left the dwelling occupied as the home and either cannot or will not pay the interest on the loan,

and, if that person’s former partner has to pay the interest on the loan in order to continue to live in the dwelling occupied as the home, there shall be met in respect of the former partner under this paragraph the amount of interest on the loan calculated as if it were a loan taken out for a purpose specified in sub-paragraph (3).

(8) Where an amount is met under this paragraph, if, notwithstanding that the amount of interest payable is reduced by virtue of—

(a)a reduction in interest rates; or

(b)a reduction in the amount of loan capital outstanding,

the amount of instalments which the borrower is liable to pay remains constant, the amount met shall not be adjusted to take account of the new amount of interest payable except where a determination is subsequently reviewed under section 104(1)(b) of the Social Security Act(24) (review of decisions).

(9) For the purpose of sub-paragraph (1)—

(a)a person shall be treated as being in receipt of income support during the following periods—

(i)any period in respect of which it was subsequently held, on appeal or review, that he was so entitled; and

(ii)any period of eight weeks or less in respect of which he was not in receipt of income support and which fell immediately between periods in respect of which he was in receipt thereof or to which (i) above applies;

(b)a person shall be treated as not being in receipt of income support during any period other than a period to which (a)(ii) above applies in respect of which it is subsequently held on appeal or review that he was not so entitled;

(c)where the claimant—

(i)was a member of a couple or a polygamous marriage; and

(ii)his partner was, in respect of a past period, in receipt of income support for himself and the claimant; and

(iii)the claimant is no longer a member of that couple or polygamous marriage; and

(iv)the claimant made his claim for income support within eight weeks of ceasing to be a member of that couple or polygamous marriage,

he shall be treated as having been in receipt of income support for the same period as his former partner had been or had been treated, for the purposes of sub-paragraph (1), as having been;

(d)where the claimant’s partner’s applicable amount was determined in accordance with paragraph 1(1) (single claimants) or paragraph 1(2) (lone parent) of Schedule 2 (applicable amounts) in respect of a past period, provided that the claim was made within eight weeks of the claimant and his partner becoming one of a couple or polygamous marriage, the claimant shall be treated as having been in receipt of income support for the same period as his partner had been or had been treated, for the purposes of sub-paragraph (1), as having been;

(e)where the claimant is a member of a couple or a polygamous marriage and his partner was, in respect of a past period in receipt of income support for himself and the claimant, and the claimant has become in receipt as a result of an election by the members of the couple or polygamous marriage, he shall be treated as having been in receipt of income support for the same period as his partner had been or had been treated, for the purposes of sub-paragraph (1), as having been.

Interest on loans for repairs and improvements to the dwelling occupied as the home

8.—(1) Subject to sub-paragraph (2), there shall be met under this paragraph an amount in respect of interest payable on a loan which is taken out, with or without security, for the purpose of—

(a)carrying out repairs or improvements to the dwelling occupied as the home; or

(b)paying off another loan but only to the extent that interest on that other loan would have been met under this paragraph had the loan not been paid off,

and which is used for that purpose or is to be so used within six months of the date of receipt or such further period as is reasonable, and the amount to be met under this paragraph shall be calculated as if the loan were a loan to which paragraph 7 applied.

(2) Subject to sub-paragraph (4), where the claimant has capital in excess of £500, the excess shall be set against the amount or the aggregate of the amounts borrowed and interest allowed only by reference to any balance.

(3) In this paragraph “repairs and improvements” means major repairs necessary to maintain the fabric of the dwelling occupied as the home and any of the following measures undertaken with a view to improving its fitness for occupation—

(a)installation of a fixed bath, shower, wash basin, sink or lavatory and necessary associated plumbing;

(b)damp proofing measures;

(c)provision or improvement of ventilation and natural lighting;

(d)provision of electric lighting and sockets;

(e)provision or improvement of drainage facilities;

(f)improvement in the structural condition of the dwelling occupied as the home;

(g)improvements to the facilities for storing, preparing and cooking food;

(h)provision of heating, including central heating;

(i)provision of storage facilities for fuel and refuse;

(j)improvements to the insulation of the dwelling occupied as the home;

(k)other improvements which are reasonable in the circumstances.

(4) For the purposes of sub-paragraph (2) no account shall be taken of capital which is disregarded by virtue of paragraph 1, 2, 4 to 6, 8(b), 9(a), 10 to 18 or 20 of Schedule 10 (capital to be disregarded).

Other housing costs

9.—(1) Subject to sub-paragraph (5), there shall be met under this paragraph the amounts, calculated on a weekly basis, in respect of the housing costs specified in paragraph 1(c) to (h) subject to the deductions specified in sub-paragraph (2).

(2) Subject to sub-paragraph (3), the deductions to be made from the weekly amounts to be met under this paragraph are—

(a)where the costs are inclusive of any of the items mentioned in paragraph 5(2) to Schedule 1 of the Housing Benefit (General) Regulations 1987(25) (payment in respect of fuel charges), the deductions prescribed in that paragraph unless the claimant provides evidence on which the actual or approximate amount of the service charge for fuel may be estimated, in which case the estimated amount;

(b)where the costs are inclusive of ineligible service charges within the meaning of paragraph 1 to Schedule 1 of the Housing Benefit (General) Regulations 1987 (ineligible service charges) the amounts attributable to those ineligible service charges or where that amount is not separated from or separately identified within the housing costs to be met under this paragraph, such part of the payments made in respect of those housing costs which are fairly attributable to the provision of those ineligible services having regard to the costs of comparable services.

(3) Where arrangements are made for the housing costs mentioned in paragraph 1(c) to (g), payable for a year, to be paid for 53 weeks, or irregularly, or so that no such costs are payable for or collected in certain periods, or so that the costs for different periods in the year are of different amounts, the weekly amount shall be the amount payable for the year divided by 52.

(4) Where as compensation for work carried out by way of reasonable repairs or redecoration which are not normally the responsibility of the claimant or other member of his family, payment of the costs mentioned in paragraph 1(c) to (g) are waived, they shall, for a period not exceeding eight weeks, be treated as payable.

(5) Where an amount calculated on a weekly basis in respect of housing costs specified in paragraph 1(e) (Crown tenants) includes amounts in respect of water charges or eligible rates (or both) within the meaning of regulation 9 of the Housing Benefit (General) Regulations 1987(26), that amount shall be reduced by—

(a)where the amount payable is known—

(i)in respect of water charges, that amount;

(ii)in respect of eligible rates, 20 per cent of that amount calculated on a weekly basis;

(b)in any other case—

(i)in respect of water charges, the amount which would be the likely charge had the property not been occupied by a Crown tenant;

(ii)in respect of eligible rates, 20 per cent of the amount which would be the likely eligible rates had the property not been occupied by a Crown tenant,

calculated on a weekly basis.

(6) For the purposes of paragraph (5) “water charges” means charges or rates in respect of water and, except in Scotland, of sewerage and allied environmental services.

Restriction on meeting housing costs under this Schedule

10.—(1) Subject to sub-paragraph (2), where—

(a)the dwelling occupied as the home is occupied with security of tenure, that is to say—

(i)under a protected or statutory tenancy for the purposes of the Rent Act 1977(27) or the Rent (Scotland) Act 1984(28), excluding any case in which the tenant has been given a notice to which any Case in Part II of Schedule 15 to the Act of 1977 or, as the case may be, Part II of Schedule 2 to the Act of 1984 (cases in which Court must order possession where dwelling-house subject to regulated tenancy) applies;

(ii)under a secure tenancy for the purposes of Chapter II of Part I of the Housing Act 1980(29) or Part II of the Tenants' Rights Etc (Scotland) Act 1980(30) (security of tenure of public sector tenants);

(iii)where the tenant is a protected occupier or statutory tenant for the purposes of the Rent (Agriculture) Act 1976(31); or

(iv)under a crofting tenancy for the purposes of the Crofters (Scotland) Acts 1955 and 1961(32);

(b)the claimant or, if he is a member of a family, any member of the family acquires some other interest in the dwelling occupied as the home; and

(c)in consequence of the acquisition the aggregate of any amounts which would, but for this paragraph, be applicable under paragraphs 7, 8 and 9 exceed the amount of the eligible rent for the purposes of regulation 10 of the Housing Benefit (General) Regulations 1987 (rent) immediately before the acquisition,

the aggregate amount so applicable shall initially be restricted to the amount of the eligible rent immediately before the acquisition and shall be increased subsequently only to the extent that this is necessary to take account of any increase, after the date of the acquisition, in expenditure on any housing costs.

(2) Sub-paragraph (1)—

(a)shall not apply where the claimant or the member of the family became liable to complete the acquisition at a time when income support was not payable in respect of him;

(b)shall cease to apply if its application becomes inappropriate by reason of any major change in the circumstances of the family affecting their ability to meet expenditure on housing costs;

(c)shall cease to apply where income support ceases to be payable in respect of the claimant or his family except that it shall reapply wherever income support again becomes payable within a period of eight weeks or less.

(3) Where the amounts to be met under paragraphs 7 to 9 and, subject to any deduction applicable under paragraph 11 are excessive, they shall be subject to restriction in accordance with sub-paragraphs (4) to (6).

(4) Subject to sub-paragraphs (5) and (6), the amounts to be met shall be regarded as excessive and shall be restricted and the excess not allowed, if and to the extent that—

(a)the dwelling occupied as the home, excluding any part which is let or is normally occupied by persons in board and lodging accommodation, is larger than is required by the claimant and his family and any child or young person to whom regulation 16(4) applies (foster children) and any other non-dependants having regard, in particular, to suitable alternative accommodation occupied by a household of the same size; or

(b)the immediate area in which the dwelling occupied as the home is located is more expensive than other areas in which suitable alternative accommodation exists; or

(c)the outgoings of the dwelling occupied as the home in respect of which the amounts to be met under paragraphs 7 to 10 are higher than the outgoings of suitable alternative accommodation in the area.

(5) Where, having regard to the relevant factors, it is not reasonable to expect the claimant and his family to seek alternative cheaper accommodation no restrictions shall be made under this paragraph.

(6) Where sub-paragraph (5) does not apply and the claimant (or other member of the family) was able to meet the financial commitments for the dwelling occupied as the home when these were entered into, no restriction shall be made under this paragraph during the first six months of any period of entitlement to income support nor during the next six months if and so long as the claimant uses his best endeavours to obtain cheaper accommodation.

(7) In this paragraph “the relevant factors” are—

(a)the availability of suitable accommodation and the level of housing costs in the area; and

(b)the circumstances of the family including in particular the age and state of health of its members, the employment prospects of the claimant and, where a change in accommodation is likely to result in a change of school, the effect on the education of any child or young person who is a member of his family, or any child or young person who is not treated as part of his family by virtue of regulation 16(4) (foster children).

Non-dependant deductions

11.—(1) Subject to the following provisions of this paragraph, the following deductions from the amount to be met under the preceding paragraphs of this Schedule in respect of housing costs shall be made in respect of a non-dependant—

(a)in respect of a non-dependant aged 18 or more who is in remunerative work or is a person to whom regulation 3(3) applies (non-dependants)—

(i)where the claimant or his partner is a Crown tenant and paragraph 9(5)(a)(ii) or (b)(ii) applies, £11·20;

(ii)in any other case, £8·20.

(b)in respect of a non-dependant aged 18 or more to whom (a) does not apply—

(i)where the claimant or his partner is a Crown tenant and paragraph 9(5)(a)(ii) or (b)(ii) applies, £6·45;

(ii)in any other case, £3·45.

(2) In the case of a non-dependant aged 18 or more to whom sub-paragraph (1)(a) applies because he is in remunerative work, where the claimant satisfies the adjudication officer that the non-dependant’s gross weekly income is less than £49·20, the deduction to be made under this paragraph shall be the deduction specified in sub-paragraph (1)(b) appropriate in his case.

(3) Only one deduction shall be made under this paragraph in respect of a couple or, as the case may be, the members of a polygamous marriage, and where a different amount or no amount would, but for this sub-paragraph, fall to be deducted in respect of the members of the couple or polygamous marriage as individuals, the higher deduction shall be made.

(4) In applying the provisions of sub-paragraph (2) in the case of a couple or, as the case may be, a polygamous marriage, regard shall be had, for the purpose of sub-paragraph (2) to the couple’s or, as the case may be, all the members of the polygamous marriage's, joint weekly income.

(5) Where a person is a non-dependant in respect of more than one joint occupier of a dwelling (except where the joint occupiers are a couple or members of a polygamous marriage), the deduction in respect of that non-dependant shall be apportioned between the joint occupiers (the amount so apportioned being rounded to the nearest penny) having regard to the number of joint occupiers and the proportion of the housing costs in respect of the dwelling occupied as the home payable by each of them.

(6) No deduction shall be made in respect of any non-dependants occupying the dwelling occupied as the home of the claimant, if the claimant or any partner of his is—

(a)blind or treated as blind by virtue of paragraph 12 of Schedule 2 (additional condition for the higher pensioner and disability premiums); or

(b)receiving an attendance allowance.

(7) No deduction shall be made in respect of a non-dependant—

(a)if, although he resides with the claimant, it appears to the adjudication officer that the dwelling occupied as his home is normally elsewhere; or

(b)if he is in receipt of a training allowance paid in connection with a Youth Training Scheme established under section 2 of the Employment and Training Act 1973(33) and he is not a person to whom regulation 3(3) applies (persons in board and lodging accommodation or hostels); or

(c)if he is a full-time student during a period of study and he is not a person to whom regulation 3(3) applies; or

(d)if he is aged under 25 and in receipt of income support and he is not a person to whom regulation 3(3) applies; or

(e)in respect of whom a deduction in the calculation of a rent rebate or allowance falls to be made under regulation 63 of the Housing Benefit (General) Regulations 1987 (non-dependant deductions).

Rounding of fractions

12.  Where any calculation made under this Schedule results in a fraction of a penny, that fraction shall be treated as a penny.

Regulation 19

SCHEDULE 4

PART Iapplicable amounts of persons in residential care and nursing homes

1.—(1) Subject to sub-paragraph (2), the weekly applicable amount of a claimant to whom regulation 19 applies shall be the aggregate of—

(a)subject to paragraph 3, the weekly charge for the accommodation, including all meals and services, provided for him or, if he is a member of a family, for him and his family increased, where appropriate, in accordance with paragraph 2 but, except in a case to which paragraph 12 applies, subject to the maximum determined in accordance with paragraph 5; and

(b)a weekly amount for personal expenses for him and, if he is a member of a family, for each member of his family determined in accordance with paragraph 13; and

(c)where he is only temporarily in such accommodation any amount applicable under regulation 17(e) or 18(f) (housing costs) in respect of the dwelling normally occupied as the home.

(2) No amount shall be included in respect of any child or young person who is a member of the claimant’s family if the capital of that child or young person calculated in accordance with Part V in like manner as for the claimant, except where otherwise provided, would exceed £3,000.

2.—(1) Where, in addition to the weekly charge for accommodation, a separate charge is made for the provision of heating, attention in connection with bodily functions, supervision, extra baths, laundry or a special diet needed for a medical reason, the weekly charge for the purpose of paragraph 1(1)(a) shall be increased by the amount of that charge.

(2) Where the weekly charge for accommodation does not include the provision of all meals, it shall, for the purpose of paragraph 1(1)(a), be increased in respect of the claimant or, if he is a member of a family, in respect of each member of his family by the following amount:

(a)if the meals can be purchased within the residential care or nursing home, the amount equal to the actual cost of the meals, calculated on a weekly basis; or

(b)if the meals cannot be so purchased, the amount calculated on a weekly basis—

(i)for breakfast, at a daily rate of £1·10;

(ii)for a midday meal, at a daily rate of £1·55; and

(iii)for an evening meal, at a daily rate of £1·55;

except that, if some or all of the meals are normally provided free of charge or at a reduced rate, the amount shall be reduced to take account of the lower charge or reduction.

3.  Where any part of the weekly charge for the accommodation is met by housing benefit, an amount equal to the part so met shall be deducted from the amount calculated in accordance with paragraph 1(1)(a).

4.  Where a payment is to be made in respect of a period of less than one benefit week, the applicable amount of the claimant under regulation 19 and this Schedule shall include the weekly amount to which paragraph 1(1)(a) applies, other than the increase for meals met under paragraph 2(2) which shall be met only in respect of the number of days falling in that period, if the weekly charge for the accommodation falls to be paid during that period.

5.—(1) Subject to paragraph 12 the maximum referred to in paragraph 1(1)(a) shall be—

(a)in the case of a single claimant, the appropriate amount in respect of that claimant specified in or determined in accordance with paragraphs 6 to 11;

(b)where the claimant is a member of a family, the aggregate of the following amounts—

(i)in respect of each member of the family aged under 11, 1½ times the amount specified in paragraph 2(a) of Schedule 2; and

(ii)in respect of each other member of the family, the appropriate amount specified in or determined in accordance with paragraphs 6 to 11.

(2) The maximum amount in respect of a member of the family aged under 11 calculated in the manner referred to in sub-paragraph (1) (b) (i) shall be rounded to the nearest multiple of 5p by treating an odd amount of 2·5p or more as 5p and by disregarding an odd amount of less than 2·5p.

Residential care homes

6.—(1) Subject to sub-paragraph (2) and paragraphs 8 to 11, where the accommodation provided for the claimant is a residential care home for persons in need of personal care by virtue of—

(a)old age, the appropriate amount shall be £130·00 per week;

(b)past or present mental disorder but excluding mental handicap, the appropriate amount shall be £130·00 per week;

(c)past or present drug or alcohol dependence, the appropriate amount shall be £130·00 per week;

(d)mental handicap, the appropriate amount shall be £160·00 per week;

(e)physical disablement, the appropriate amount shall be—

(i)in the case of a person to whom paragraph 8 applies, £190.00 per week, or

(ii)in any other case £130·00 per week; or

(f)any condition not falling within sub-paragraphs (a) to (e) above, the appropriate amount shall be £130·00 per week.

(2) Where the claimant is over pensionable age and—

(a)he is blind; or

(b)there is in respect of him a certificate, issued by the Attendance Allowance Board under section 35(2) of the Social Security Act(34), which states that he has satisfied or is likely to satisfy both the conditions mentioned in section 35(1) of that Act; or

(c)he is in receipt of any payment based on need for attendance which is payable—

(i)under section 61 of the Social Security Act(35)

(ii)by virtue of article 14 of the Naval, Military and Air Forces etc (Disablement and Death) Service Pensions Order 1983(36) or article 14 of the Personal Injuries (Civilians) Scheme 1983(37)

the appropriate amount shall, except where sub-paragraph (1)(d) or (e)(i) applies, be £155·00 per week.

Nursing homes

7.  Subject to paragraphs 8 to 11, where the accommodation provided for the claimant is a nursing home for persons in need of personal care by virtue of—

(a)past or present mental disorder but excluding mental handicap, the appropriate amount shall be £185·00 per week;

(b)mental handicap, the appropriate amount shall be £200·00 per week;

(c)past or present drug or alcohol dependence the appropriate amount shall be £185·00 per week;

(d)physical disablement, the appropriate amount shall be—

(i)in the case of a person to whom paragraph 8 applies, £230·00 per week, or

(ii)in any other case, £185·00 per week;

(e)terminal illness, the appropriate amount shall be £230·00 per week; or

(f)any condition not falling within sub-paragraphs (a) to (e) the appropriate amount shall be £185·00 per week.

8.  For the purposes of paragraphs 6(e) and 7(d) this paragraph applies to a person under pensionable age or a person over pensionable age who, before attaining pensionable age, had become physically disabled.

9.  The appropriate amount applicable to a claimant in a residential care home or nursing home shall, subject to paragraph 10, be determined—

(a)where the home is a residential care home registered under Part I of the Registered Homes Act 1984(38), by reference to the particulars recorded in the register kept by the relevant registration authority for the purposes of that Act; or

(b)where the home is a residential care home not so registered or a nursing home, by reference to the type of care which, taking into account the facilities and accommodation provided, the home is providing to the claimant.

10.—(1) Where more than one amount would otherwise be applicable, in accordance with paragraph 9, to a claimant in a residential care home or a nursing home, the appropriate amount in any case shall be determined in accordance with the following sub-paragraphs.

(2) Where the home is a residential care home registered under Part I of the Registered Homes Act 1984 and where the personal care that the claimant is receiving corresponds to the care received by a category of residents for whom the register indicates that the home provides accommodation, the appropriate amount shall be the amount, in paragraph 6 or 8, as the case may be, as is consistent with that personal care.

(3) Where the home is a residential care home which is so registered but where the personal care that the claimant is receiving does not correspond to the care received by a category of residents for whom the register indicates that the home provides accommodation, the appropriate amount shall be the lesser or least amount, in paragraphs 6 or 8, as the case may be, as is consistent with those categories.

(4) In any case not falling within sub-paragraph (2) or (3), the appropriate amount shall be whichever amount of the amounts applicable in accordance with paragraphs 6 or 7 and 9 is, having regard to the types of personal care that the home provides, most consistent with the personal care being received by the claimant in that accommodation.

11.—(1) Where the accommodation provided for the claimant is a residential care home or a nursing home which is, in either case, situated in the Greater London area and the actual charge for that accommodation exceeds the appropriate amount in his case by virtue of the preceding paragraphs of this Schedule, that amount shall be increased by any excess up to £17·50.

(2) In sub-paragraph (1), “the Greater London area” means all those areas specified as being within Area 53 in Schedule 6.

Circumstances in which the maximum is not to apply

12.—(1) Where a claimant who satisfies the conditions in sub-paragraph (2) has been able to meet the charges referred to in paragraphs 1 and 2 without recourse to income support or supplementary benefit, the maximum determined in accordance with paragraph 5 shall not apply for the period of 13 weeks or, if alternative accommodation is found earlier, such lesser period following the date of claim except to the extent that the claimant is able to meet out of income disregarded for the purposes of Part V the balance of the actual charge over the maximum.

(2) The conditions for the purposes of sub-paragraph (1) are that—

(a)the claimant has lived in the same accommodation for more than 12 months; and

(b)he was able to afford the charges in respect of that accommodation when he took up residence; and

(c)having regard to the availability of suitable alternative accommodation and to the circumstances mentioned in paragraph 10(7)(b) of Schedule 3 (housing costs), it is reasonable that the maximum should not apply in order to allow him time to find alternative accommodation; and

(d)he is not a person who is being accommodated—

(i)by a housing authority under Part III of the Housing Act 1985(39) (housing the homeless), or

(ii)by a local authority under section 1 of the Child Care Act 1980(40) (duty of local authorities to promote welfare of children) or, in Scotland, section 12 of the Social Work (Scotland) Act 1968(41) (general welfare); and

(e)he is seeking alternative accommodation and intends to leave his present accommodation once alternative accommodation is found.

(3) Where—

(a)the claimant was a resident in a residential care home or nursing home immediately before 29 April 1985 and has continued after that date to be resident in the same accommodation, apart from any period of temporary absence; and

(b)immediately before that date, the actual charge for the claimant’s accommodation was being met either wholly or partly out of the claimant’s resources, or, wholly or partly out of other resources which can no longer be made available for this purpose; and

(c)since that date the local authority have not at any time accepted responsibility for the making of arrangements for the provision of such accommodation for the claimant; and

(d)the Secretary of State, in his discretion, has determined that this sub-paragraph shall have effect in the particular case of the claimant in order to avoid exceptional hardship,

the maximum amount shall be the rate specified in sub-paragraph (4) if that rate exceeds the maximum which, but for this sub-paragraph, would be determined under paragraph 5.

(4) For the purposes of sub-paragraph (3) the rate is either—

(a)the actual weekly charge for the accommodation immediately before 29 April 1985 plus £10; or

(b)the aggregate of the following amounts—

(i)the amount estimated under regulation 9(6) of the Supplementary Benefit (Requirements) Regulations 1983(42) as then in force as the reasonable weekly charge for the area immediately before that date;

(ii)£26.15; and

(iii)if the claimant was entitled at that date to attendance allowance under section 35 of the Social Security Act at the higher rate £28·60 or, as the case may be, at the lower rate, £19·10,

whichever is the lower amount.

Personal allowances

13.  The allowance for personal expenses for the claimant and each member of his family referred to in paragraph 1(1)(b) shall be—

(a)for the claimant £9·55; and, if he has a partner, for his partner, £9.55;

(b)for a young person aged 18, £9·55;

(c)for a young person aged under 18 but over 16, £6·20;

(d)for a child aged under 16 but over 11, £5·30;

(e)for a child aged under 11, £3·45.

PART IIpersons to whom regulation 19 does not apply

14.  A claimant and his family whose accommodation and meals (if any) are provided in whole or in part by a close relative of any member of the family or other than on a commercial basis.

15.  A person who is on holiday and during a period which has not continued for more than 13 weeks is absent from his home or from a hospital or similar institution in which he is normally a patient.

16.  A person who has entered a residential care or nursing home for the purpose of receiving an amount of income support to which he would not otherwise be entitled.

17.  A person aged 16 or over but under 19 who is in the care of a local authority under a relevant enactment except someone who is personally liable to pay the cost of his accommodation and maintenance direct to someone other than a local authority.

Regulation 20

SCHEDULE 5

PART Iapplicable amounts of persons in board and lodging accommodation or hostels

1.—(1) Subject to sub-paragraph (2), the weekly applicable amount of a claimant to whom regulation 20 applies shall be the aggregate of—

(a)subject to paragraph 3, the weekly charge for the accommodation including all meals and services provided for him or, if he is a member of a family, for him and his family increased where appropriate in accordance with paragraph 2 but, except in a case to which paragraph 10 applies, subject to the maximum determined in accordance with paragraph 5; and

(b)a weekly amount for personal expenses for him and, if he is a member of a family, for each member of his family determined in accordance with paragraph 11; and

(c)where he is only temporarily in such accommodation any amount applicable under regulation 17 (e) or 18 (f) (housing costs) in respect of the dwelling normally occupied as the home.

(2) No amount shall be included in respect of any child or young person who is a member of the claimant’s family if the capital of that child or young person calculated in accordance with Part V in like manner as for the claimant, except where otherwise provided, would exceed £3,000.

2.  Where the weekly charge for accommodation does not include the provision of all meals, it shall, for the purpose of paragraph 1 (1) (a) be increased in respect of the claimant or, if he is a member of a family, in respect of each member of his family by the following amount—

(a)if the meals can be purchased within the board and lodging accommodation or hostel, the amount equal to the actual cost of the meals, calculated on a weekly basis; or

(b)if the meals cannot be so purchased, the amount calculated on a weekly basis—

(i)for breakfast, at a daily rate of £1·10;

(ii)for a midday meal, at a daily rate of £1·55;

(iii)for an evening meal, at a daily rate of £1·55;except that, if some or all of the meals are normally provided free of charge or at a reduced rate, the amount shall be reduced to take account of the lower charge or reduction.

3.  Where any part of the weekly charge for the accommodation is met by housing benefit, an amount equal to the part so met shall be deducted from the amount calculated in accordance with paragraph 1 (1) (a).

4.  Where a payment is to be made in respect of a period of less than one week, the applicable amount of the claimant under regulation 20 and this Schedule shall include the weekly amount to which paragraph 1 (1) (a) applies, other than the increase for meals met under paragraph 2 which shall be met only in respect of the number of days falling in that period, if the weekly charge for the accommodation falls to be paid during that period.

5.  Subject to paragraphs 6 and 7 the maximum referred to in paragraph 1 (1) (a) shall be—

(a)in the case of a single claimant—

(i)in board and lodging accommodation, the appropriate amount in respect of that claimant specified in column (3) of Schedule 6 in respect of the board and lodging area in which his accommodation is situated; or

(ii)in a hostel £70·00 per week;

(b)where the claimant is a member of a family, in respect of each member of the family aged under 11, 1½ times the amount specified in paragraph 2 (a) of Schedule 2, and either

(i)if he is residing in board and lodging accommodation, in respect of each other member of the family, the appropriate amount specified in column (3) of Schedule 6 in respect of the board and lodging area in which the family’s accommodation is situated; or

(ii)if he is residing in a hostel, in respect of each other member of the family, £70·00 per week.

6.  The maximum amount applicable in respect of a member of the family aged under 11 calculated in the manner referred to in paragraph 5 (b) (i) shall be rounded to the nearest multiple of 5p by treating an odd amount of 2·5p or more as 5p and by disregarding an odd amount of less than 2·5p.

7.  Except as provided by paragraph 9, the maximum amount specified in paragraph 5 shall be increased by any excess of the actual charge made to the claimant or, if he is a member of a family, made in respect of the family up to £17·50 in a case to which paragraph 8 applies or, if the claimant is one of a couple and paragraph 8 (a) or (c) (i) or (ii) applies, up to £35·00.

8.  The increase referred to in paragraph 7 shall apply in the case of—

(a)a claimant who has attained a pensionable age or, if one of a couple or polygamous marriage either member of that couple or any member of that marriage is aged 65 or over;

(b)a claimant or any other member of the family who is infirm by reason of physical or mental disability;

(c)a claimant in respect of whom one or more of the following conditions are satisfied:—

(i)he or his partner is a person suffering from a mental disorder within the meaning of the Mental Health Act 1983(43) or the Mental Health (Scotland) Act 1984(44) in respect of whom a local social services authority has, under section 21 of, and paragraph 2 of Schedule 8 to, the National Health Service Act 1977(45) (prevention, care and after-care), made arrangements for the provision of residential accommodation in a private household or in premises which are not required to be registered under the Registered Homes Act 1984(46);

(ii)he or his partner is a person who is resident in premises which are used for the rehabilitation of alcoholics or drug addicts and is so resident for the purposes of such rehabilitation.

9.  Only one increase under paragraph 7 shall be applicable in respect of the claimant or any member of his family and the amount payable by virtue of that paragraph in respect of a claimant and his partner shall not exceed £35·00 and, if the claimant or any of his family who are in board and lodging accommodation or in a hostel is in receipt of an attendance allowance the increase shall only be payable to the extent that the excess of the actual charge for board and lodging accommodation or the hostel over the maximum amount is more than the amount of the attendance allowance in payment but only up to the amount specified for the time being as the higher rate of attendance allowance for the purposes of section 35 (3) of the Social Security Act.

10.—(1) Where the claimant satisfies the conditions in sub-paragraph (2), the maximum referred to in paragraph 1 (1) (a) shall not apply for a period of 13 weeks or, if alternative accommodation is found earlier, such lesser period following date of claim except to the extent that the claimant is able to meet out of income disregarded for the purposes of Part V the balance of the actual charge for the board and lodging accommodation over the maximum.

(2) For the purposes of sub-paragraph (1) the conditions are that—

(a)the claimant has lived in the same accommodation for more than 12 months; and

(b)he was able to afford the charges in respect of that accommodation when he took up residence; and

(c)having regard to the availability of board and lodging accommodation or hostels and to the circumstances mentioned in paragraph 10 (7) (b) of Schedule 3 (housing costs), it is reasonable for the maximum referred to in paragraph 5 not to apply for the said period in order to allow the claimant to find alternative accommodation; and

(d)he is not a person who is being accommodated—

(i)by a housing authority under Part III of the Housing Act 1985(47) (housing the homeless), or

(ii)by a local authority under section 1 of the Child Care Act 1980(48) (duty of local authorities to promote welfare of children), or, in Scotland, section 12 of the Social Work (Scotland) Act 1968(49) (general welfare); and

(e)he is seeking alternative accommodation and intends to leave his present accommodation once alternative accommodation is found.

11.  The allowance for personal expenses for the claimant and each member of his family referred to in paragraph 1 (1) (b) shall be—

(a)for the claimant and for his partner where—

(i)at least one member of the family is a child or young person, £11·50;

(ii)he or his partner satisfies the conditions specified in Part III of Schedule 2 (applicable amounts) for the applicability of any of the premiums specified in that Part, £11·50;

(b)in any other case—

(i)for the claimant, £10·30, and

(ii)for his partner, £10·30;

(c)for a young person aged 18, £10·30;

(d)for a young person aged 16 or over but under 18, £6·20;

(e)for a child aged 11 or over but under 16, £5·30;

(f)for a child aged under 11, £3·45.

PART IIpersons to whom regulation 20 and part i of this schedule is not to apply

12.  A claimant and his family whose accommodation and meals (if any) are provided in whole or in part by a close relative of any member of that family or other than on a commercial basis.

13.  A person who is on holiday and during a period which has not continued for more than 13 weeks is absent from the home or from a hospital or similar institution in which he is normally a patient.

14.  A person who has entered into arrangements for board and lodging accommodation for the purpose of receiving an amount of income support to which he would not otherwise be entitled.

15.  A person aged 16 or over but under 19 who is in the care of a local authority under the provisions of a relevant enactment, except where he is personally liable to pay the cost of his accommodation and maintenance direct to someone other than a local authority.

16.—(1) Subject to sub-paragraphs (2) to (5) below, a person who—

(a)is aged 16 or over but under 25, and, if one of a couple, whose partner is also 16 or over but under 25; and

(b)is required to be available for employment.

(2) Sub-paragraph (1) above shall not have effect in respect of such a person before the beginning of, and during, the initial period (including that period as extended under sub-paragraph (5) below) shown as applicable in column (4) of Schedule 6 in respect of the board and lodging area in which that person’s accommodation is situated.

(3) Without prejudice to sub-paragraph (4) below, sub-paragraph (1) above shall not have effect in respect of a claimant who was in receipt of supplementary benefit as a boarder on 24th November 1985.

(4) Sub-paragraph (1) above shall not have effect also where such a person—

(a)is treated as responsible for a child or young person; or

(b)is in a hostel; or

(c)is, or has a partner who is, pregnant; or

(d)is, or has a partner who is, chronically sick, mentally handicapped, physically disabled or suffering from a mental disorder or was, or has a partner who was, suffering from a mental disorder and it is unreasonable to expect him or his partner to be in accommodation other than board and lodging accommodation; or

(e)had, or has a partner who had, prior to the date of claim been in the accommodation for six months whilst either in employment and not in receipt of supplementary allowance under the Supplementary Benefit Act 1976 or income support, or, if not in employment and in receipt of such an allowance or income support, was not required to be available for employment; or

(f)has, or has a partner who has, entered that accommodation as part of a programme of rehabilitation or resettlement under guidance from a government department, health authority, local authority, voluntary organisation or the probation service; or

(g)is a student, during his normal summer vacation provided he occupies the same accommodation as he occupied when attending his course of study; or

(h)has, or has a partner who has, been in the care of a local authority under a relevant enactment and twelve months has not elapsed since he or his partner ceased to be in care; or

(i)is aged 16 or over but under 19 and—

(i)has no parent and there is no person acting in the place of his parent; or

(ii)has had to leave his family home because he was in physical or moral danger; or

(iii)is in the care of the local authority under the provisions of a relevant enactment, being a person who is personally liable to pay the cost of his accommodation and maintenance direct to someone other than a local authority; or

(j)is in the same accommodation as that of his or of his partner’s parents or step-parents who are in board and lodging accommodation; or

(k)is in the same accommodation as that of the persons with whom he or his partner has been previously boarded out by a local authority under the provisions of a relevant enactment; or

(l)is, or has a partner who is, remanded on bail, or is, or has a partner who is, in compliance with a court order, under the supervision of a probation officer, a local social services authority or, in Scotland, a social work department; or

(m)would, or has a partner who would, suffer exceptional hardship if sub-paragraph (1) above were to apply; and any question as to whether any person comes within this sub-paragraph shall be determined by the Secretary of State in his discretion and his decision of such questions—

(i)shall be given in relation to particular cases only;

(ii)may be revised from time to time as he considers appropriate;

(iii)may be given so as to have effect for a specified period; and

(iv)shall be conclusive for the purposes of this Schedule.

(5) Where during an initial period a person becomes employed and is not in receipt of income support or he is no longer required to be available for employment and is in receipt of income support, that initial period shall be extended by the period during which that person is employed or is no longer required to be available for employment provided he is in the same board and lodging area.

17.—(1) A person who was for a period one to whom regulation 20 and Part II of this Schedule applied because of sub-paragraph (2) of paragraph 16 (during an initial period) and in respect of whom the relevant period has not elapsed.

(2) For the purposes of this paragraph “the relevant period” means the period of 26 weeks beginning with the first day of the benefit week following the date of the adjudication officer’s decision involving a determination that that person is a person to whom regulation 20 and Part II of this Schedule applies because of paragraph 16 (2).

18  . In this Schedule “initial period” means that period provided by paragraph 16 (2) consisting of a week or multiple of weeks beginning with the first day of the benefit week following the date of the adjudication officer’s decision involving a determination that the person concerned is a person in board and lodging accommodation because of paragraph 16 (2), being a week or multiple of weeks that correspond to benefit weeks during which the person is required to be available for employment.

Regulation 20(2) paragraph 5 of Schedule 5

SCHEDULE 6BOARD AND LODGING AREAS

PART Iwales and south western region

PART IIlondon south region

PART IIIlondon north region

PART IVmidlands region

PART Vnorth western region

PART VInorth eastern region

PART VIIscotland

Regulation 21

SCHEDULE 7APPLICABLE AMOUNTS IN SPECIAL CASES

Regulations 36(2), 38(2) and 44(6)

SCHEDULE 8SUMS TO BE DISREGARDED IN THE CALCULATION OF EARNINGS

1.  In the case of a claimant who has been engaged in remunerative work as an employed earner—

(a)any earnings paid or due to be paid on termination of his employment—

(i)by way of retirement but only if on retirement he is entitled to a retirement pension under the Social Security Act, or would be so entitled if he satisfied the contribution conditions;

(ii)otherwise than by retirement except earnings to which regulation 35(1)(b) to (e) and (g) and (h) applies (earnings of employed earners);

(b)any earnings paid or due to be paid on the interruption of his employment except earnings to which regulation 35(1)(d) and (e) applies; but this sub-paragraph shall not apply where the claimant has been suspended from his employment.

2.  In the case of a claimant who has been engaged in part-time employment as an employed earner immediately before he made a claim for income support, any earnings paid on termination or interruption of that employment except any payment to which regulation 35(1)(e) applies (earnings of employed earners); but this paragraph shall not apply where the claimant has been suspended from his employment.

3.  In the case of a claimant who has been engaged in remunerative work or part-time employment as a self-employed earner and who has ceased to be so employed, from the date of the cessation of his employment any earnings derived from that employment except earnings to which regulation 30(2) (royalties etc.) applies.

4.—(1) If the calculation of the claimant’s applicable amount—

(a)includes, or but for his being an in-patient or in accommodation in a residential care home, nursing home, hostel, board and lodging accommodation or in residential accommodation would include, an amount by way of a disability premium under Schedule 2 (applicable amounts), or

(b)(i)includes, or but for his being an in-patient or in accommodation in a residential care home, nursing home, hostel, board and lodging accommodation or in residential accommodation would include, an amount by way of the higher pensioner premium under Schedule 2; and

(ii)he or his partner has attained the age of 60 and immediately before attaining that age either was engaged in employment and the claimant was or but for his being an in-patient or in accommodation in a residential care home, nursing home, hostel or board and lodging accommodation or in residential accommodation would have been, entitled under sub-paragraph (a) to a disregard of £15; and

(iii)either he or his partner has continued in part-time employment,

£15; but, notwithstanding regulation 23 (calculation of income and capital of members of claimant’s family and of a polygamous marriage), if this paragraph applies to a claimant it shall not apply to his partner except where, and to the extent that, the earnings of the claimant which are to be disregarded under this paragraph are less than £15.

(2) For the purposes of sub-paragraph (1)(b)(iii) no account shall be taken of any period not exceeding eight consecutive weeks occurring on or after the date on which the claimant or his partner attained the age of 60 during which either ceased to be engaged in employment or the claimant ceased to be entitled to income support.

5.  If an amount by way of a lone parent premium under Schedule 2 (applicable amounts) is, or but for the pensioner premium being applicable to him or for his accommodation in a residential care home, nursing home, hostel, board and lodging accommodation or in residential accommodation would be, included in the calculation of the claimant’s applicable amount, £15.

6.—(1) In a case where paragraph 4 does not apply, if the claimant is one of a couple and both members of that couple are under age 60 and one of the couple has for a continuous period of two years been in receipt of income support in respect of a couple (whether or not the same couple) and during that period—

(a)neither member has been engaged in remunerative work; or

(b)neither member has been receiving full-time education;

for a period exceeding eight consecutive weeks, £15; but, notwithstanding regulation 23 (calculation of income and capital of members of claimant’s family and of a polygamous marriage), if this paragraph applies to one of the couple it shall not apply to the other except where, and to the extent that, the earnings of the one which are to be disregarded under this paragraph are less than £15;

(2) For the purposes of this paragraph—

(a)in determining whether a period is continuous no account shall be taken of any period not exceeding eight weeks during which the claimant ceased to be a member of a couple or to be in receipt of income support;

(b)in determining whether one of a couple has been in receipt of income support for a continuous period of two years, consecutive periods during which either member was in receipt of income support shall be treated as periods during which one of that couple had been so in receipt.

(3) For the purposes of this paragraph—

(a)any period beginning before the commencement of these regulations during which the claimant or the other member of the couple was in receipt of supplementary benefit in respect of a couple, and immediately preceding the receipt of income support, is to be taken into account as if it were a period of income support except where during that period either the claimant or the other member was engaged in remunerative work or receiving relevant education within the meaning of section 6 of the Supplementary Benefits Act 1976(54);

(b)any period during which the claimant or the other member of the couple is in receipt of income support under the Social Security (Northern Ireland) Order 1986(55) or was in receipt of supplementary benefit under the Supplementary Benefit (Northern Ireland) Order 1977(56) and immediately preceding the receipt of income support is to be taken into account as if it were a period of income support;

and in determining whether any such period is continuous sub-paragraph (2) hereof shall apply by analogy.

7.—(1) In a case to which none of paragraphs 4 to 6 applies to the claimant, £15 of earnings derived from one or more employments as—

(a)a part-time fireman in a fire brigade maintained in pursuance of the Fire Services Acts 1947 to 1959(57);

(b)an auxiliary coastguard in respect of coast rescue activities;

(c)a person engaged part time in the manning or launching of a life boat;

(d)a member of any territorial or reserve force prescribed in Part I of Schedule 3 to the Social Security (Contributions) Regulations 1979(58);

but, notwithstanding regulation 23 (calculation of income and capital of members of claimant’s family and of a polygamous marriage), if this paragraph applies to a claimant it shall not apply to his partner except to the extent specified in sub-paragraph (2).

(2) If the claimant’s partner is engaged in employment—

(a)specified in sub-paragraph (1) so much of his earnings as would not in aggregate with the amount of the claimant’s earnings disregarded under this paragraph exceed £15;

(b)other than one specified in sub-paragraph (1) so much of his earnings from that employment up to £5 as would not in aggregate with the claimant’s earnings disregarded under this paragraph exceed £15.

8.  Where the claimant is engaged in one or more employments specified in paragraph 7(1) but his earnings derived from such employments are less than £15 in any week and he is also engaged in any other part-time employment so much of his earnings from that other employment up to £5 as would not in aggregate with the amount of his earnings disregarded under paragraph 7 exceed £15.

9.  In a case to which none of paragraphs 4 to 8 applies to the claimant, £5.

10.  Notwithstanding paragraph 6, 7, or 9, where two or more payments of the same kind and from the same source are to be taken into account in the same benefit week, there shall be disregarded from each payment the sum specified in that paragraph; but this paragraph shall only apply in the case of a payment which it has not been practicable to treat under regulation 31(1)(b) (date on which income treated as paid) as paid on the first day of the benefit week in which it is due to be paid.

11.  Any earnings derived from employment which are payable in a country outside the United Kingdom for such period during which there is a prohibition against the transfer to the United Kingdom of those earnings.

12.  Where a payment of earnings is made in a currency other than sterling, any banking charge or commission payable in converting that payment into sterling.

13.  Any earnings which is due to be paid before the date of claim and which would otherwise fall to be taken into account in the same benefit week as a payment of the same kind and from the same source.

14.  Any earnings of a child or young person except earnings to which paragraph 15 applies.

15.  In the case of earnings of a person treated as receiving relevant education under regulation 12(b) (relevant education) and who is engaged in remunerative work, if—

(a)an amount by way of a disabled child premium under Schedule 2 (applicable amounts) is, or but for his accommodation in a residential care home, nursing home, hostel or board and lodging accommodation would be, included in the calculation of his applicable amount and his earning capacity is not, by reason of his disability, less than 75 per cent of that which he would, but for that disability normally be expected to earn, £15;

(b)in any other case, £5.

16.  In this Schedule “part-time employment” means employment in which the person is not to be treated as engaged in remunerative work under regulation 5 or 6 (persons treated, or not treated, as engaged in remunerative work).

Regulation 40 (2)

SCHEDULE 9SUMS TO BE DISREGARDED IN THE CALCULATION OF INCOME OTHER THAN EARNINGS

1.  Any amount paid by way of tax on income which is taken into account under regulation 40 (calculation of income other than earnings).

2.  Any payment in respect of any expenses incurred by a claimant who is—

(a)engaged by a charitable or voluntary body; or

(b)a volunteer,

if he otherwise derives no remuneration or profit from the employment and is not to be treated as possessing any earnings under regulation 42 (6) (notional income).

3.  In the case of employment as an employed earner, any payment in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of the employment.

4.  In the case of a payment of statutory sick pay under Part I of the Social Security and Housing Benefits Act 1982 or statutory maternity pay under Part V of the Act or any remuneration paid by or on behalf of an employer to the claimant who for the time being is unable to work due to illness or maternity—

(a)any amount deducted by way of primary Class 1 contributions under the Social Security Act;

(b)one-half of any sum paid by the claimant by way of a contribution towards an occupational or personal pension scheme.

5.  Any housing benefit.

6.  Any mobility allowance.

7.  Any concessionary payment made to compensate for the non-payment of—

(a)any payment specified in paragraph 6 or 9;

(b)income support.

8.  Any mobility supplement or any payment intended to compensate for the non-payment of such a supplement.

9.  Any attendance allowance but, where the claimant is in a residential care home or nursing home, only to the extent that it exceeds the amount for the time being specified as the higher rate for the purposes of section 35 (3) of the Social Security Act(59).

10.  Any payment to the claimant as holder of the Victoria Cross or George Cross or any analogous payment.

11.  Any sum in respect of a course of study attended by a child or young person payable by virtue of regulations made under section 81 of the Education Act 1944(60) (assistance by means of scholarships and otherwise), or by virtue of section 2 (1) of the Education Act 1962(61) (awards for courses of further education) or section 49 of the Education (Scotland) Act 1980(62) (power to assist persons to take advantage of educational facilities).

12.  In the case of a claimant to whom regulation 9 (1) (persons treated as available for employment) applies, any sums intended for any expenditure specified in paragraph (2) of regulation 62 (calculation of grant income) necessary as a result of his attendance on his course.

13.  In the case of a claimant attending a training course provided under the Adult and Youth Training Programme established under section 2 (1) of the Employment and Training Act 1973(63) or a course at an employment rehabilitation centre established under that section—

(a)any travelling expenses reimbursed to the claimant;

(b)any living away from home allowance under section 2 (2) (d) of that Act but only to the extent that his rent or rates payable in respect of accommodation not normally occupied by him as his home are not met by housing benefit;

but this paragraph does not apply to any part of any allowance under section 2 (2)(d) of that Act expressed to be a personal allowance.

14.  Any Job Start Allowance payable pursuant to arrangements made under section 2 (1) of the Employment and Training Act 1973.

15.  Except in the case of a person to whom section 23 of the Act (trade disputes) applies and for so long as it applies, subject to paragraphs 36 and 37, £5 of any charitable payment or of any voluntary payment made or due to be made (whether or not so made) at regular intervals other than a payment which is made by a person for the maintenace of any member of his family or his former partner or of his children; and, for the purposes of this paragraph, where a number of such charitable or voluntary payments fall to be taken into account in any one week they shall be treated as though they were on one such payment.

16.  Subject to paragraphs 36 and 37, £5 of any of the following, namely—

(a)a war disablement pension or war widow’s pension or a payment made to compensate for the non-payment of such a pension;

(b)a pension paid under the social security scheme of a country outside Great Britain and which either—

(i)is analogous to a war disablement pension; or

(ii)is paid to a war widow in respect of a person’s death but is otherwise analogous to such a pension.

(c)a pension paid under any special provision made by the law of the Federal Republic of Germany or any part of it or of the Republic of Austria, to victims of National Socialist persecution.

17.  Where a claimant receives income under an annuity purchased with a loan which satisfies the following conditions—

(a)that the loan was made as part of a scheme under which not less than 90 per cent of the proceeds of the loan were applied to the purchase by the person to whom it was made of an annuity ending with his life or with the life of the survivor of two or more persons (in this paragraph referred to as “the annuitants”) who include the person to whom the loan was made;

(b)that the interest on the loan is payable by the person to whom it was made or by one of the annuitants;

(c)that at the time the loan was made the person to whom it was made or each of the annuitants had attained the age of 65;

(d)that the loan was secured on a dwelling in Great Britain and the person to whom the loan was made or one of the annuitants owns an estate or interest in that dwelling; and

(e)that the person to whom the loan was made or one of the annuitants occupies the accommodation on which it was secured as his home at the time the interest is paid,

the amount, calculated on a weekly basis equal to—

(i)where, or in so far as, section 26 of the Finance Act 1982(64) (deduction of tax from certain loan interest) applies to the payments of interest on the loan, the interest which is payable after deduction of a sum equal to income tax on such payments at the basic rate for the year of assessment in which the payment of interest becomes due;

(ii)in any other case the interest which is payable on the loan without deduction of such a sum.

18.  Any payment made to the claimant by a member of his houshold which is a contribution towards his living and accommodation costs except a payment to which paragraph 19 or 20 applies.

19.  Where the claimant occupies a dwelling as his home which is also occupied by a person other than one to whom paragraph 18 refers or one who is provided with board and lodging accommodation and that person is contractually liable to make payments in respect of his occupation of the dwelling to the claimant—

(a)£4 of any payment made by that person; and

(b)a further £6·70, where that payment is inclusive of an amount for heating.

20.  Where a claimant is employed in providing board and lodging accommodation for which a charge is payable, £35 of the weekly charge paid by each person provided with such accommodation.

21.  Except where regulation 42 (4) (a) (i) (notional income) applies or in the case of a person to whom section 23 of the Act (trade disputes) applies and for so long as it applies, any income in kind.

22.—(1) Any income derived from capital to which the claimant is or is treated under regulation 52 (capital jointly held) as beneficially entitled but, subject to sub-paragraph (2), not income derived from capital disregarded under paragraph 1, 2, 4, 6 or 12 of Schedule 10.

(2) Income derived from capital disregarded under paragraph 2 or 4 of Schedule 10 but only to the extent of any mortgage repayments and payment of rates made in respect of the dwelling or premises in the period during which that income accrued.

23.  Any income which is payable in a country outside the United Kingdom for such period during which there is prohibition against the transfer to the United Kingdom of that income.

24.  Where a payment of income is made in a currency other than sterling, any banking charge or commission payable in converting that payment into sterling.

25.—(1) Any payment made to the claimant in respect of a child or young person who is a member of his family—

(a)in accordance with a scheme approved by the Secretary of State under section 50 (4) of the Adoption Act 1958(65) or as the case may be, section 51 of the Adoption (Scotland) Act 1978(66) (schemes for payments of allowances to adopters);

(b)which is a payment made by a local authority in pursuance of section 34 (6) or, as the case may be, section 50 of the Children Act 1975(67) (contributions to a custodian towards the cost of the accommodation and maintenance of a child);

to the extent specified in sub-paragraph (2).

(2) In the case of a child or young person—

(a)to whom regulation 44 (5) (capital in excess of £3,000) applies, the whole payment;

(b)to whom that regulation does not apply, so much of the weekly amount of the payment as exceeds the applicable amount in respect of that child or young person and where applicable to him any amount by way of a disabled child premium.

26.  Any payment made by a local authority to the claimant with whom a person is boarded out by virtue of arrangements made under section 21 (1) (a) of the Child Care Act 1980(68) or, as the case may be, section 12 of the Social Work (Scotland) Act 1968(69) or by a voluntary organisation under section 61 of the 1980 Act or by a care authority under regulation 9 of the Boarding Out and Fostering of Children (Scotland) Regulations 1985(70) (provision of accommodation and maintenance for children in care).

27.  Any payment made by a health authority, local authority or voluntary organisation to the claimant in respect of a person who is not normally a member of the claimant’s household but is temporarily in his care.

28.  Except in the case of a person to whom section 23 of the Act (trade disputes) applies and for so long as it applies, any payment made under section 1 of the Child Care Act 1980 (duty of local authorities to promote welfare of children) or, as the case may be, section 12 of the Social Work (Scotland) Act 1968 (general welfare).

29.—(1) Any payment received under an insurance policy, taken out to insure against the risk of being unable to maintain repayments on a loan to which paragraph 7 or 8 of Schedule 3 applies (interest on loans to acquire an interest in the dwelling, or for repairs and improvements to the dwelling, occupied as the home) and used to meet such repayments, to the extent that it does not exceed—

(a)subject to sub-paragraph (2), the amount, calculated on a weekly basis, of any interest which is excluded under that paragraph;

(b)the amount of the payment, calculated on a weekly basis, due on the loan attributable to the repayment of capital; and

(c)the amount, calculated on a weekly basis, of the premium due on that policy.

(2) The amount to which sub-paragraph (1) (a) refers shall be taken into account in calculating the amount to be excluded under this paragraph only for such period during which there is applicable to the claimant 50 per cent of his eligible interest under paragraph 7 of Schedule 3.

30.  Except where paragraph 28 applies, any payment made to the claimant which is intended and used as a contribution towards—

(a)the amount of eligible interest which is not met under paragraph 7 or 8 of Schedule 3 (interest on loans to acquire an interest in the dwelling, or for repairs and improvements to the dwelling, occupied as the home);

(b)the capital repayments—

(i)where the loan is one specified in paragraph 7 (3) (a) or 8 (1) (a) of Schedule 3; or

(ii)where the loan is one specified in paragraph 7 (3) (b) or 8 (1) (b) of Schedule 3 only to the extent that the capital outstanding on that loan represents the capital balance outstanding on the previous loan at the time when the loan was taken out;

(c)any payment or charge specified in paragraph 1 of Schedule 3 to the extent that that payment or charge has not been met;

(d)his rent in respect of the dwelling occupied by him as his home but only to the extent that it is not met by housing benefit; or his accommodation charge but only to the extent that the actual charge for the accommodation exceeds the amount determined in accordance with regulation 19 or 20 (board and lodging, hostels, residential care and nursing homes).

31.  Any social fund payment.

32.  Any payment of income which under regulation 48 (income treated as capital) is to be treated as capital.

33.  Any payment under paragraph 2 of Schedule 6 to the Act (pensioner’s Christmas bonus).

34.  In the case of a person to whom section 23 of the Act (trade disputes) applies and for so long as it applies, any payment up to the amount of the relevant sum within the meaning of subsection 6 of that section made by a trade union; but, notwithstanding regulation 23 (calculation of income and capital of members of claimant’s family and of a polyamous marriage) if this paragraph applies to a claimant it shall not apply to his partner except where, and to the extent that, the amount to be disregarded under this paragraph is less than the relevant sum.

35.  Any payment which is due to be paid before the date of claim which would otherwise fall to be taken into account in the same benefit week as a payment of the same kind and from the same source.

36.  The total of a claimant’s income or, if he is a member of a family, the family’s income and the income of any person which he is treated as possessing under regulation 23 (3) (calculation of income and capital of members of claimant’s family and of a polygamous marriage) to be disregarded under regulation 63 (2) (b) and 64 (1) (c) (calculation of covenant income where a contribution assessed) and paragraphs 15 and 16 shall in no case exceed £5 per week.

37.  Notwithstanding paragraph 36 where two or more payments of the same kind and from the same source are to be taken into account in the same benefit week, there shall be disregarded from each payment the sum which would otherwise fall to be disregarded under this Schedule; but this paragraph shall only apply in the case of a payment which it has not been practicable to treat under regulation 31 (1) (b) (date on which income treated as paid) as paid on the first day of the benefit week in which it is due to be paid.

Regulation 46(2)

SCHEDULE 10CAPITAL TO BE DISREGARDED

1.  The dwelling occupied as the home but, notwithstanding regulation 23 (calculation of income and capital of members of claimant’s family and of a polygamous marriage), only one dwelling shall be disregarded under this paragraph.

2.  Any premises acquired for occupation by the claimant which he intends to occupy within26 weeks of the date of acquisition or such longer period as is reasonable in the circumstances to enable the claimant to obtain possession and commence occupation of the premises.

3.  Any sum directly attributable to the proceeds of sale of any premises formerly occupied by the claimant as his home which is to be used for the purchase of other premises intended for such occupation within 26 weeks of the date of sale or such longer period as is reasonable in the circumstances to enable the claimant to complete the purchase.

4.  Any premises occupied in whole or in part by—

(a)a partner or relative of any member of the family where that person is aged 60 or over or is incapacitated;

(b)the former partner of a claimant where the claimant is not to be treated as occupying a dwelling as his home; but this provision shall not apply where the former partner is a person from whom the claimant is estranged or divorced.

5.  Any reversionary interest.

6.  The assets of any business owned in whole or in part by the claimant and for the purposes of which he is engaged as a self-employed earner or, if he has ceased to be so engaged, for such period as may be reasonable in the circumstances to allow for disposal of any such asset.

7.  Any arrears of, or any concessionary payment made to compensate for arrears due to the non-payment of—

(a)any payment specified in paragraph 6, 8 or 9 of Schedule 9 (other income to be disregarded);

(b)an income-related benefit or supplementary benefit, family income supplement under the Family Income Supplements Act 1970(71) or housing benefit under Part II of the Social Security and Housing Benefits Act 1982;

but only for a period of 52 weeks from the date of the receipt of the arrears or of the concessionary payment.

8.  Any sum—

(a)paid to the claimant in consequence of damage to, or loss of the home or any personal possession and intended for its repair or replacement; or

(b)acquired by the claimant (whether as a loan or otherwise) on the express condition that it is to be used for effecting essential repairs or improvements to the home,and which is to be used for the intended purpose, for a period of 26 weeks from the date on which it was so paid or acquired or such longer period as is reasonable in the circumstances to enable the claimant to effect the repairs, replacement or improvements.

9.  Any sum—

(a)deposited with a housing association as defined in section 1(1) of the Housing Associations Act 1985(72) or section 338(1) of the Housing (Scotland) Act 1987(73) as a condition of occupying the home;

(b)which was so deposited and which is to be used for the purchase of another home, for the period of 26 weeks or such longer period as is reasonable in the circumstances to complete the purchase.

10.  Any personal possessions except those which had or have been acquired by the claimant with the intention of reducing his capital in order to secure entitlement to supplementary benefit or income support or to increase the amount of that benefit.

11.  The value of the right to receive any income under an annuity and the surrender value (if any) of such an annuity.

12.—(1) Where the funds of a trust are derived from a payment made in consequence of any personal injury to the claimant the value of the trust fund and the value of the right to receive any payment under that trust, for a period of two years or such longer period as is reasonable in the circumstances beginning—

(a)if, at the date of the payment the claimant or his partner is in receipt of an income-related benefit, on that date;

(b)in any other case, on the date on which an income-related benefit is first payable to the claimant or his partner after the date of that payment,

but, for the purposes of regulation 17, 18, 21, 44(5) and 71 and Schedules 4 and 5 (applicable amounts and modifications in respect of children and young persons) in calculating the capital of a child or young person there shall be no limit as to the period of disregard under this paragraph.

(2) For the purposes of sub-paragraph (1) any reference to an income-related benefit shall be construed as if it included a reference to supplementary benefit.

13.  The value of the right to receive any income under a life interest or from a liferent.

14.  The value of the right to receive any income which is disregarded under paragraph 11 of Schedule 8 or paragraph 23 of Schedule 9 (earnings or other income to be disregarded).

15.  The surrender value of any policy of life insurance.

16.  Where any payment of capital falls to be made by instalments, the value of the right to receive any outstanding instalments.

17.  Except in the case of a person to whom section 23 of the Act (trade disputes) applies and for so long as it applies, any payment made under section 1 of the Child Care Act 1980 (duty of local authorities to promote welfare of children) or, as the case may be, section 12 of the Social Work (Scotland) Act 1968 (general welfare).

18.  Any social fund payment.

19.  Any refund of tax which falls to be deducted under section 26 of the Finance Act 1982(74) (deductions of tax from certain loan interest) on a payment of relevant loan interest for the purpose of acquiring an interest in the home or carrying out repairs or improvements in the home.

20.  Any capital which under regulations 41 and 44(1) (capital treated as income and modifications in respect of children and young persons) is to be treated as income.

21.  Where a payment of capital is made in a currency other than sterling, any banking charge or commission payable in converting that payment into sterling.